Credit Cards

Home Loans

Personal Loans

Other Loans

Calculators

Investments

Credit Score

Govt. Utility Documents

Download Mobile App

Insurance

Resources

BankBazaar

MetLife Smart Child Plan

The Smart Child life insurance policy is a unit linked policy where the policyholder is given a choice of 6 different funds to invest in. It also offers a 5 different modes to pay the premiums, one of which is the PSP (Payroll Savings Program).

Check Your Credit Score Now

Overview of Met Life Smart Child

Investments in this MetLife insurance policy can be as little as Rs. 18,000 per annum and it offers a sum assured that is 10 times the annual premium paid. It also offers policyholders liquidity through partial withdrawals when they need funds.

Eligibility Conditions of MetLife Smart Child

Entry age
Min age	Max age
Life insured	18 years	55 years
Beneficiary	90 days	17 years

Check Your Credit Score Now

Key Features of MetLife Smart Child

Type

Unit linked insurance plan

Sum assured

The sum assured can be 10 times the annual premium paid.

Coverage

100% of the sum assured is paid on death.
Instead of ending, the policy stays in force and future premiums are paid by MetLife every month.

Maturity benefits: The maturity benefits paid under this policy are:

100% of the fund value can be withdrawn along with any loyalty additions as applicable.
The fund value can also be withdrawn in instalments as chosen by the policyholder.
They can also be withdrawn in a manner where a part of the maturity benefits are taken as a lump sum and the remainder in instalments.

Basis `

Individual

Premiums

Minimum premium payable towards this policy is Rs. 18,000 per annum.
The maximum premium payable in a year will depend on the age of the policyholder:

Age group	Maximum annual premium
Up to the age of 35 years	Rs. 2 lakhs
36 years to 45 years	Rs. 1.25 lakhs
Above 45 years	Rs. 1 lakh

Age group

Maximum annual premium

Up to the age of 35 years

Rs. 2 lakhs

36 years to 45 years

Rs. 1.25 lakhs

Above 45 years

Rs. 1 lakh

Premium paying term

This is a regular pay policy therefore the premium paying term will be equal to the policy term.

Premium paying modes

Annual
Semi-annual
Quarterly
Monthly
PSP (Payroll Savings Program)

Policy term

10 years
15 years
20 years

Policy validity

The validity is the same as the policy term

Renewability

Not applicable

Bonuses

2% of the average fund value is added to the fund for policies with a 15 year term.
3% of the average fund value will be added to the policy in case of policies with a term of 20 years.

Other features

Freelook period: The freelook period for this policy is 15 days.
Grace period: The grace period is 30 days from the date on which the premium is due.
Lock in period: This policy has a lock-in period of 5 years.
If a policy is surrendered before the lock-in period is completed, the benefits will be paid only once the period is over.

Add-on covers / Riders

Check Your Credit Score Now

Benefits/Advantages of MetLife Smart Child

Investments made into this policy will be eligible for tax benefits under section 80C of the IT Act of 1961.
This policy offers the payroll saving program as one of the modes to pay the premiums. Under this program, the premium amounts will be deducted directly from the policyholders salary.
In case the life insured passes away when the policy is still in effect, the company will waive off all future premiums and pay them every month themselves.
If the policyholder requires cash in a hurry he/she can make up to 2 partial withdrawals from this policy in one year.

How The Plan Works?

For the sake of understanding let us assume that Rajesh, who is 31 years old, decides to invest Rs. 2 lakhs every year in this policy. He selects a term of 15 years and opts to pay the premiums annually. Based on his investment, his benefits will be:

Sum assured: Rs. 20 lakhs
Maturity benefit: This will be value of the funds at the time of maturity of the policy.
Death benefits: If he passes away after the 4th year, it would mean that he has paid Rs. 8 lakhs worth of premiums. Premiums for the remaining 11 years will be paid by the insurer and the sum assured will be paid to his beneficiary.
When the policy matures it will be eligible for a 2% loyalty addition. This means that 2% of the average fund value over the 36 months preceding maturity will be added to the fund.
If he surrenders the policy in the 7th year then he will be allowed to withdraw the entire policy amount.
If he wishes to surrender it in the 3rd year, the policy will be terminated but the benefits will be paid only after 2 years (to complete the lock in period).

Charges

Service

Charge

Fund management charge

Preserver II: 1% per annum
Protector II: 1% per annum
Balancer II: 1.15% per annum
Virtue II: 1.25% per annum
Multiplier II: 1.25% per annum
Flexi Cap: 1.25% per annum
Discontinued funds: 0.5% per annum

premium allocation charges

First year 7%
Second year 6%
Third year onwards 5%

Switching charges

First four switches in a year will be free
Any additional switches will attract a charge of Rs. 250 per switch

Partial withdrawal charges

The first partial withdrawal will be free, the second one will be charged at Rs. 250.

Policy administration charge

Year 1 to Year 5 - Rs. 10 per month
Year 6 onwards - Rs. 35 per month

Premium discontinuance charge

Year	Premium below Rs. 25,000 p.a	Premium above Rs. 25,000 p.a
Year 1	Minimum of 20% of annual premium, 20% of the fund value and Rs. 3,000	Minimum of 6% of annual premium, 6% of the fund value and Rs. 6,000
Year 2	Minimum of 15% of annual premium, 15% of the fund value and Rs. 2,000	Minimum of 4% of annual premium, 4% of the fund value and Rs. 5,000
Year 3	Minimum of 10% of annual premium, 10% of the fund value and Rs. 1,500	Minimum of 3% of annual premium, 3% of the fund value and Rs. 4,000
Year 4	Minimum of 5% of annual premium, 5% of the fund value and Rs. 1,000	Minimum of 2% of annual premium, 2% of the fund value and Rs. 2,000
Year 5 and above	Nil	Nil

Year

Premium below Rs. 25,000 p.a

Year 1

Minimum of 20% of annual premium, 20% of the fund value and Rs. 3,000

Year 2

Minimum of 15% of annual premium, 15% of the fund value and Rs. 2,000

Year 3

Minimum of 10% of annual premium, 10% of the fund value and Rs. 1,500

Year 4

Minimum of 5% of annual premium, 5% of the fund value and Rs. 1,000

Year 5 and above

Nil

Check Your Credit Score Now

Funds

There are 6 funds in which investments can be made. Their objectives and risk factors are shown below.

Fund Name	Risk Rating	Objective
Preserver II	Very low risk	Income generation through securities issued by state and central governments.
Protector II	Low risk	Regular income generation through investment in fixed income securities.
Balancer II	Medium risk	Generate income through investments in securities and equity markets.
Virtue II	Very high risk	Income generation from investments in companies promoting a healthy lifestyle.
Multiplier II	Very high risk	Generate long term returns from investment in equities selected from CNX Nifty.
Flexi Cap	Very high risk	Long term generation of returns through actively managed diverse portfolios.

Check Your Credit Score Now

Disclaimer

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

Explore More:

Credit Card:

Credit Score:

Personal Loan:

Home Loan:

Fixed Deposit:

Calculator:

Learn More:

Others:

Mobile Apps:

support[at]bankbazaar[dot]com